Using artificial intelligence (AI) driven decision-making could be the key to helping businesses make multi-million pound savings against financial fraud in the future.
The company, Rainbird, predicts that over a five year period the use of AI automated decisions could bring £7bn worth of savings to UK businesses. Automation will help detect patterns of fraud, which can help businesses be made aware and put more security sanctions in place.
Rainbird has said there has been an increase in the investment fraud detection solutions, with the industry seeing a significant rise in the number of advanced analytics based software products.
The start-up believes that an AI and automation driven approach could help to remedy the problem, helping businesses save money by stopping fraudulent actions. Rainbird believes its new platform is the best approach to solve the growing problem of financial fraud, using the combination of AI and data analytics Raibird has said it will enhance fraud detection for customers.
The platform will enable fraud detection to be done much quicker and more accurately than humanly possible, saving businesses time and money that their current strategy. Additionally, the platform is flexible to create a model that fits to each individual business based on its unique fraud detection needs.
Financial Fraud Action UK’s Fraud The Facts 2017, found that as a result of investing in advanced detection systems, its members managed to prevent £6.40 in every £10 of attempted fraud. Although the prevention rate of 64% may look good on the surface, the reality is that it is not enough. Rainbird has said with its platform it aims to push the number up to £8 by applying AI and automation to the problem.
James Loft, Chief Commercial Officer, Rainbird Technologies, said: “£7bn in predicted savings will be a sobering figure for many UK enterprises. Rainbird has already helped one credit card provider, processing over half a million transactions per minute, to automate 85% of all cases and achieve a 60% reduction in back-office fraud processing costs. Using Rainbird to avoid inconsistent human judgements our customer has increased fraud detection rates and reduced false positives, which are known to lead to around 40% of cardholders to abandon their card.”
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The savings predicted by Rainbird derive from the UK’s Crowne Clark Whitehall Annual Fraud Indicator report, which found the UK annual fraud total at £190bn with £140bn from private sector. According to the company the report suggests fraud levels will remain similar over the next five years, which would be to identify £31.625bn of fraud. Based on the positive outcomes so far, Rainbird then used this figure and predicted it can reduce it by 22% and reduce fraud by £7bn in five years.
